Key Macroeconomic Indicators for Base Metal Prices (2017-7-5)

SHANGHAI, Jul. 5 (SMM) –Market will eye the euro zone’s June service and composite PMI and May retail sales, as well as US May durable goods orders on Wednesday.   

It is expected that US factory orders will fall 0.5% MoM in May and US durable goods orders will be revised up to a 1.0% month-on-month decline in May. This echoes decline in new order sub-index under Markit’s US manufacturing PMI in May. New order sub-index under Markit’s US manufacturing PMI hit the lowest since last September at 53.5 in May. 

The euro zone’s flash composite PMI in June ended continuous gains recorded since last September. The euro zone’s flash service PMI fell for three months in a row in June. If the final figure is flat with preliminary figure, there will be limited impact on the euro. 

The euro zone’s consumer confidence index rose in May and June. The euro zone’s retail sales, though still pointing to growth on a yearly basis, rose at a slower pace on a monthly basis in March and April. If retail sales could keep pace with rising consumer confidence index, the euro might get a boost. 

See SMM price forecast, please click: SMM Price Outlook for Base Metals on SHFE (Jul. 5, 2017)